9911796707
TMI Blog1968 (3) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... required by Hind Lamps, but there was no improvement in the supply position. 2. Hind Lamps then applied to the Government of U.P. to grant direct supply of electrical energy from the State Electricity Board. The State Government by order dated December 26, 1961, issued in exercise of the powers conferred by Section 3(2)(e)(ii) of the Indian Electricity Act, 1910 as amended by the Indian Electricity (Uttar Pradesh Sanshodhan) Adhiniyam, 1961, directed the State Electricity Board "to supply electrical energy directly to Hind Lamps upon terms and conditions similar to those on which it supplied electrical energy to other customers". In reply to a representation to reconsider the decision, the Government informed the Company that the "decision was necessitated in the public interest and there was no justification for revising it". Another representation made by the Company was also turned down and direct supply of electrical energy was commenced by the State Electricity Board to Hind Lamps. 3. A petition moved by the Company in the High Court of Allahabad for a writ of certiorari quashing the order dated December 26, 1961 was rejected by R. S. Pathak, J. In appeal under the Letters P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany to object the rules of natural justice were violated. 5. The Indian Electricity Act 9 of 1910 makes provision by Section 3 for the grant of a licence to supply energy in any specified area and also to lay down or place electric supply lines for transmission of energy. Clause (e) of Sub-section (2) as amended by U.P. Act 30 of 1961, and Sub-section (3) provide : (2)(e) grant of a licence under this Part for any purpose shall not in any way hinder or restrict- (i) the grant of licence to another person within the same area of supply for a like purpose; or (ii) the supply of energy by the State Government or the State Electricity Board within the same area, where the State Government deems such supply necessary in public interest ; (3) Where the supply of energy in. any area by the State Electricity Board is deemed necessary under Sub-clause (ii) of Clause (e) of Sub-section (2), the Board may, subject to any terms and conditions that may be laid down by the State Government, supply energy in that area notwithstanding anything to the contrary contained in this Act or the Electricity Supply Act, 1948. The State Government may grant a licence to supply electrical energy t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ential treatment had no reasonable relation to the object sought to be achieved by the law. In the present case there is no evidence about the rate charged for energy supplied by the State Electricity Board to the Company on December 26, 1961. nor is there any evidence on the record about the rates charged for electrical energy supplied to the consumers by the Company. 8. The plea of discrimination has to be considered from two different points of view-(1) the discrimination between Hind Lamps and the other consumers within the area of supply in respect of which the Company held the licence; and (2) discrimination in the rates of supply charged by the State Electricity Board to the Company and to Hind Lamps. There is no evidence on the record about the operative rates on the date of the impugned order. Again Hind Lamps was a consumer of electrical energy and so were the other consumers within the area of supply in respect of which the Company held the licence. But on that account it does not follow that they belong to the same class. In one case energy is being supplied by the Company and in the other by the State Electricity Board. Again, there is no grievance made by any consum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch supply "necessary in public interest". The High Court observed that "the State Government was the sole Judge of the question whether direct supply of energy to Hind Lamps was or was not in the public interest. The test is of a subjective nature, no objective test being contemplated. Thus it is not open to this Court to examine whether it was necessary in the public interest. The subjective opinion of the Government is final in the matter, and the same is not justiciable or subject to judicial scrutiny as to the sufficiency of the grounds on which the State Government has formed its opinion. In other words the Legislature has left it to the sole discretion of the State Government to decide whether a direct supply of energy was in the public interest". 11. We are unable to agree with that view. By Section 3(2)(e) as amended by the U.P. Act 30 of 1961, the Government is authorised to supply energy to consumers within the area of the license in certain conditions : exercise of the power is conditioned by the Government deeming it necessary in public interest to make such supply. If challenged, the Government must show that exercise of the power was necessary in public interest. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the defective supply by the Company, the Hind Lamps felt dissatisfied and informed the Government that if the supply position was not improved it would be forced to shift its factory from the State to some other State; that the industry gave employment to a number of people in the State and saved a large amount of foreign exchange and on that account the State Government was keen to give it fair and due protection that it deserved; that the total supply of electricity to the Company was 1700 K.W. and even if the entire supply under the agreement was made available by the Company to Hind Lamps it would fall short of its requirements. It was, therefore, in public interest that direct supply of energy should be made available to Hind Lamps. An affidavit containing similar averments was also filed on behalf of the State of Uttar Pradesh. 13. There is no evidence on behalf of the Company to the contrary. For maintaining effective working of a large industry which gave scope for employment to the local population and earned foreign exchange, if it was necessary to give direct supply of electrical energy to Hind Lamps, the order to the Electricity Board to make direct supply of electrica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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